ch4 - Exam Name_

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The consumer ʹ s work - leisure choice problem focuses on how a consumer ʹ s work - leisure decision is affected by the consumer ʹ s A) Preferences and psychology. B) productivity and psychology. C) preferences and productivity. D) psychology and preferences. E) preferences and constraints. 1) 2) In macroeconomic analysis, the representative consumer A) plays the role of a stand - in for all consumers in the economy. B) is the consumer who bargains with firms for all workers in the economy. C) is the consumer with an average standard of living. D) is always a misleading fiction. E) denotes the consumer with the average amount of income. 2) 3) We assume that the representative consumer ʹ s preferences exhibit the properties that A) they evolve over time and that more is always preferred to less. B) more is sometimes preferred to less and that consumption and leisure are both normal goods. C) the consumer likes diversity and that more is sometimes preferred to less. D) more is preferred to less and that the consumer prefers diversity. E) less consumption is preferred to more leisure and that consumption and leisure are both normal goods. 3) 4) ʺ More is always preferred to less ʺ refers to A) choices between happiness and utility. B) more consumption and less leisure. C) choices between consumption and leisure. D) choices between consumption and work. E) choices between work and leisure. 4) 5) We assume that the representative consumer ʹ s preferences exhibit the properties that A) they be convex and that more is always preferred to less. B) each consumer has one strictly preferred good and that consumption and leisure are both normal goods. C) more is always preferred to less and that consumers do not like diversity in his or her consumption bundle. D) more is always preferred to less and that each consumer has one strictly favorite good. E) that consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundle. 5) 1
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6) We typically assume that A) both consumption and leisure are inferior goods. B) both consumption and leisure are normal goods. C) both consumption and leisure and complimentary goods. D) consumption is a normal good and leisure is an inferior good. E) consumption is an inferior good and leisure is a normal good. 6) 7) A good is normal for a consumer if A) some minimal level of the good must be consumed to assure the consumer ʹ s survival. B) the assumption of ʺ more is always preferred to less ʺ holds. C) its consumption rises when income rises. D) it is always consumed in a consistent quantity. E) its consumption falls when income rises. 7) 8) An indifference curve is best defined as A) a boundary line between attainable and unattainable choices.
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ch4 - Exam Name_

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